IKEA proposes to double size of distribution hub in Joliet

IKEA announced that it submitted plans to the city of Joliet for a second distribution center - to accompany the terminal previously announced and planned to open in summer 2017.

In February 2015, IKEA advanced the development of its previously approved 1.4-million-square-foot Midwest distribution center on 72 acres of land already purchased in 2008 at the Laraway Crossings Business Park in Joliet.

The company is now proposing another, similarly sized facility on 62 acres it hopes to purchase adjacent to the west of the currently planned first building.

This combined distribution hub would serve the inventory needs of IKEA stores throughout the Midwestern U.S., as well as customer fulfillment. Goods received by the Joliet facilities will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores worldwide.

"On the heels of securing all approvals for our first terminal in Joliet and moving forward with plans to construct that building, we are fortunate to have the opportunity to propose another building, on the adjacent property," said IKEA U.S. CFO Rob Olson.

With more than 1,300 suppliers in 54 countries, IKEA globally transports products to its stores through regional distribution centers. These two Joliet facilities will enhance the current distribution network comprised of two distribution centers on the west coast and three on the east. Its central location will allow goods to be received at coastal ports from both Asia and Europe and then transported inland to the Joliet warehouses. Also, proximity to a nearby railroad intermodal will provide additional long-term transportation options. And, by operating two Joliet terminals, IKEA will eliminate a significant amount of CO2 emissions annually, with even more reductions expected via intermodal solutions.

In terms of contributing to the local economy, this second project eventually will result in even more construction-related jobs and positions at the distribution center, in addition to property tax revenue generated for local governments and schools. IKEA also will evaluate potential on-site power generation to complement its current U.S. renewable energy presence at nearly 90 percent of its U.S. locations.

This project will represent the fifth significant investment by IKEA in the state of Illinois. Besides the already planned Joliet distribution center and this new proposed terminal, there are two IKEA stores in the Chicagoland area, one each in Bolingbrook and Schaumburg. And, last year, IKEA announced it was purchasing a 49-turbine wind farm in Hoopeston, Illinois that is on track to be operational this spring.

Since its 1943 founding in Sweden, IKEA has offered home furnishings of good design and function at low prices so the majority of people can afford them.